Transactions Involving Ethereum-based Tether (USDT) Attain Fresh Highs
Etherscan noted that trading volumes involving the most utilized stablecoin in the cryptocurrency space started a sharp rise in September 2019, attaining 188,621 daily transactions at the month’s peak, valued at about $620 million in USDT.
A new record has been set as the trading that involved Ethereum-based Tether (USDT) was over $1.2 billion on May 25. This means that the aggregated number of daily transactions that involved the stablecoin on the day represents a fresh lifetime high.
Etherscan noted that the number of transactions within twenty-four hours was 208,107 which are valued at $1.2 billion. Since the beginning of this year, $4.7 billion Tethers have entered into the Bitcoin ecosystem and as at May 22, there was about $9 billion Tethers in circulation.
That means about fifty percent of all Tether issued since the substitute-dollar token was first developed were created in the last five months. Nicholas Weaver of the International Computer Science Institute in Berkeley said perhaps it is a sign that low levels of actual dollars are in circulation within the Bitcoin domain.
A real $1 held by Tether Limited should back each USDT but the firm revealed in the past that its holdings were only 74 percent backed. Likewise, the company said that each USDT is now backed by its reserves, which consists of both cash and various investments, and interestingly, there is yet to be an audit of the reserves.
USDT is likewise available on other blockchains, including Bitcoin, Tron and Algorand. Last year, about $212 billion in value was transferred through the stablecoin and the value for 2020 may be more than this if this trend continues.
In recent times, USDT was number three among the leading ten cryptocurrencies by market cap (approximately $8.8 billion), outranking XRP by around $200 million, according to CoinMarketCap.